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ankoles [38]
3 years ago
5

With a(n) _______, the full amount of the loan is received when the contract is signed, but only the interest is paid over the l

ife of the loan. The principal is then paid on the date that the loan is due.
retirement loan

balloon loan

line of credit

installment loan
Business
1 answer:
Vikentia [17]3 years ago
6 0

Answer: Balloon Loan

A balloon loan is a type of loan where the final payment is usually much larger than the payment preceding it.  

In a balloon loan, the entire loan amount is given to the borrower as soon as the loan is approved and the contract is signed.

The interest falls due and is paid during the life of the loan.  

The principal however, is paid as a balloon payment on the final day of the life of the loan.


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Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA tax, in a
Lana71 [14]

Answer:

1. Journalize Ricardo's expenses for employee benefits and for payroll taxes. Explanations are not required.

Assuming Ricardo has not yet paid the expenses:

XX, 2018, employee benefits and payroll tax expenses

Dr FICA tax (OASDI) expense 3,844

Dr FICA tax (Medicare) expense 899

Dr FUTA tax expense 132

Dr SUTA tax expense 1,188

Dr Worker health insurance 3,000

Dr Worker life insurance 330

Dr 401k plan 6,200

    Cr FICA tax (OASDI) payable 3,844

    Cr FICA tax (Medicare) payable 899

    Cr FUTA tax payable 132

    Cr SUTA tax payable 1,188

    Cr Worker health insurance payable 3,000

    Cr Worker life insurance payable 330

    Cr 401k plan payable 6,200

If Ricardo has already paid the expenses and benefits, you should only credit cash for $15,593

2. What was Ricardo's total expense for 2018 related to payroll?

$15,593 + $62,000 = $77,593

Explanation:

salaries expense $62,000

FICA taxes (OASDI) = $62,000 x 6.2% = $3,844

FICA taxes (Medicare) = $62,000 x 1.45% = $899

FUTA taxes = $22,000 x 0.6% = $132

SUTA taxes = $22,000 x 5.4% = $1,188

health insurance $3,000

life insurance $330

retirement benefits $6,200

6 0
3 years ago
Which of the following best describes the principle of asset allocation?
faltersainse [42]
<span>The primary goal of a strategic asset allocation is to create an asset mix that seeks to provide the optimal balance between expected risk and return for a long-term

</span>
6 0
3 years ago
In the late 1500s, the city of Antwerp was under siege by the Duke of Parma. The siege caused the price of food to rise, so the
Paha777 [63]
D a misallocation of resources
4 0
3 years ago
Larkspur Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $104,800 to m
Lady_Fox [76]

Answer:

First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.

= Annuity * Present value interest factor of annuity due, 5 years, 7%.

= 37,400 * 4.3872

= $164,081

Date                          Account Details                            Debit              Credit

Dec. 31, 2019            Lease Receivable                         $164,081

                                 Cost of goods sold                       $104,800

                                 Sales                                                                    $164,081

                                 Inventory                                                             $104,800

Date                          Account Details                           Debit                Credit

Dec. 31, 2019           Cash                                             $37,400

                                 Lease Receivable                                               $37,400

5 0
2 years ago
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Hard
mojhsa [17]

Answer:

B. 950,000

Explanation:

The value of the building is calculated as the amount of appraisal is $374,000 for Land $1,100,000 for building and $726,000 for equipment which makes a total of $2,200,000 ($374,000 + $1,100,000 + $726,000). The amount of building appraisal is then divided by the total amount of appraisal to calculate the percentage of building appraisal which gives us a percentage of 5% ($1,100,000 / $2,200,000) and then finally this 5% is multiplied by the amount of property cost of Harding which gives us the value of building which is $950,000 ($1,900,000 * 5%).

5 0
3 years ago
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